We have developed a way of doing transfer pricing that involves the proper professional, process, and technology to assist you with your transfer pricing challenges. This way will allow us to provide your transfer pricing needs in an efficient manner.
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Transfer Pricing Services
Transfer Pricing service to minimize exposure to penalties and consequences
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In today's ever-changing and complex regulatory environment, personalized tax planning and income tax preparation for high-net-worth individuals is crucial. Our team of tax experts work closely with you, providing innovative tax strategies that aim to reduce your income taxes while ensuring compliance with income tax laws. As trusted tax advisors to global families, real estate investors, family offices, and business owners, our tax professionals have extensive experience and knowledge in preparing both federal tax returns and state tax returns. Let us take care of your personal income tax returns, so you can focus on enjoying your success. |
For multinational companies, one of the most
important tax areas is Transfer Pricing
Transfer pricing is a key area of compliance for multinational companies (MNE) that operate in different countries. They need to demonstrate that their business model and their transfer pricing policies are consistent across jurisdictions. Tax authorities around the world are scrutinizing cross-border transactions more closely, so MNE needs to plan, structure, implement, document, comply and defend their transfer pricing position well. H&CO offers the services to help MNE manage their transfer pricing needs effectively.
Transfer Pricing service to minimize exposure to penalties and consequences
|
In today's ever-changing and complex regulatory environment, personalized tax planning and income tax preparation for high-net-worth individuals is crucial. Our team of tax experts work closely with you, providing innovative tax strategies that aim to reduce your income taxes while ensuring compliance with income tax laws. As trusted tax advisors to global families, real estate investors, family offices, and business owners, our tax professionals have extensive experience and knowledge in preparing both federal tax returns and state tax returns. Let us take care of your personal income tax returns, so you can focus on enjoying your success. |
Our Approach for Transfer Pricing
Transfer Pricing Documentation
Transfer pricing documentation is a yearly compliance requirement for multinational companies that shows arm’s length compliance in their intercompany transactions
Transfer Pricing Risk Assessment
A transfer pricing risk assessment is a preliminary step to identify the potential transfer pricing issues and exposures of a multinational company.
Transfer Pricing Benchmark Analysis
A benchmark study is a tool for demonstrating the arm's length principle of transfer prices. It involves choosing comparable companies or transactions
Why H&CO Transfer Pricing Services?
H&CO Global Network offers the ideal platform for the Company’s transfer pricing needs. Transfer pricing requires consistency across the different phases of the process and in the documentation requirements for each country. This can only be done by a single transfer pricing provider. There are not many Firms that have a wide network, especially between the United States and Latin America. This makes H&CO the smart choice for companies with cross-border transactions.
Who are our Transfer Pricing Services for?
We offer a range of transfer pricing services for multinational enterprises that want to handle their transfer pricing obligations efficiently. Our transfer pricing skills are available to:
- - Foreign firms that operate in the United States and have transactions within their group.
- - U.S. firms that have cross border transactions outside the U.S.
- - Latin America’s MNE with cross border transactions
Transfer Pricing Documentation
The annual transfer pricing documentation has been one of the most sophisticated tax requirements for multinational companies. Most countries require it as a yearly compliance documentation. To globalize and standardize, the new transfer pricing documentation rules under the BEPS approach suggest a documentation method based on a more central model as the methodology is the same for all countries (Master File / Local File). H&CO has the expertise, tools, and its own network to comply with the transfer pricing specifically in the U.S and Latin America.
Transfer Pricing Risk Assessment
If the transfer pricing project is part of the global business expansion or the annual documentation, we strongly recommend doing a preliminary transfer pricing benchmarking assessment. In this stage, we will collect the essential information about the company's transfer pricing aspects including the review of the business model, their intangible assets, intercompany transactions, and existing transfer pricing documentation. We provide an executive summary to discuss their current transfer pricing situation and the next steps.
Transfer Pricing Benchmark Analysis
Benchmark studies are crucial for demonstrating the arm's length principle in transfer pricing. Consistent global standards should be used within a corporate group to select comparable companies or transactions, ensuring clarity for tax authorities. This analysis will describe the method for choosing comparables, providing a profitability indicator for the tested entity. We use public and private databases to gather financial and descriptive data, resulting in a transfer pricing benchmarking memo to help the company evaluate its policy.
Operational Transfer Pricing
Taxpayers must show they have processes to ensure transfer pricing aligns with expectations. Many multinationals struggle to establish timely intercompany pricing procedures, leading to manual, retroactive tax processes. H&CO can enhance their services in transfer pricing by helping implement effective policies aligned with new regulations. Through Operational TP, H&CO offers a comprehensive approach that connects Policy Management with Implementation, resulting in robust TP Documentation.
TP Value Chain Analysis
TP Value Chain Analysis evaluates the relative value added by each entity to the overall business in the context of intercompany pricing transactions. H&CO value chain methodology helps companies review their value chain comprehensively and check if it matches the current transfer pricing arrangements. This process enables the company to explore the possible business models, tax consequences, and operational changes needed to achieve a specific economic outcome. The process typically consists of (i) opportunity assessment and feasibility, (ii) detailed design; and (iii) implementation.
Transfer Pricing Dispute Resolution Services
Our team of transfer pricing and controversy experts, including economists and tax dispute resolution specialists, can help you manage transfer pricing disputes. We assist in selecting dispute resolution methods, provide economic analysis for your transfer pricing documentation, prepare responses to IDRs, and negotiate with tax authorities. The IRS is concerned that foreign-owned companies may not report taxable income correctly under U.S. transfer pricing rules (Section 482), potentially shifting profits to countries with lower tax rates.
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